标签： North America

In a significant monetary policy move, the US Federal Reserve announced on Wednesday, October 30, 2025, a reduction in the federal funds rate by 25 basis points, bringing the target range to 3.75 to 4 percent. This decision marks the second interest rate cut by the Fed this year, reflecting its ongoing efforts to navigate economic challenges and stimulate growth. The rate adjustment was made during the Federal Open Market Committee (FOMC) meeting, where policymakers assessed the current economic landscape and determined the necessity of easing monetary conditions. The move is expected to influence borrowing costs across the economy, impacting consumers, businesses, and financial markets. Analysts suggest that the rate cut could provide a boost to economic activity, particularly in sectors sensitive to interest rate changes, such as housing and automotive industries. However, concerns remain about the potential long-term effects on inflation and financial stability. The Fed’s decision underscores its commitment to balancing economic growth with price stability, as it continues to monitor global economic trends and domestic indicators.

In a significant monetary policy move, the UAE Central Bank announced a reduction in its key benchmark rate to 3.90%, effective October 30. This decision, which lowers the base rate on overnight deposit facilities by 25 basis points from 4.15%, comes in direct response to the US Federal Reserve’s decision to cut interest rates by 25 basis points earlier on Wednesday. This marks the second rate cut by the Fed this year. The UAE’s monetary policy is closely tied to the US due to the dirham’s peg to the US dollar, necessitating alignment with Federal Reserve actions. Additionally, the UAE Central Bank has opted to maintain the interest rate for short-term liquidity borrowing at 50 basis points above the base rate for all standing credit facilities. The base rate, which is anchored to the US Federal Reserve’s Interest Rate on Reserve Balances, serves as a critical indicator of the UAE’s monetary policy stance and sets a floor for overnight money market rates. The US rate cut aims to stimulate the economy amid ongoing challenges, including the lingering effects of former President Donald Trump’s tariffs and the prolonged government shutdown, which has disrupted the publication of official economic data. Fed officials have expressed concerns about a cooling labor market, prompting a focus on bolstering employment despite inflation remaining above target. While financial markets had anticipated the October and December rate cuts, Fed Chair Jerome Powell has indicated that the Federal Open Market Committee (FOMC) remains open to future decisions. Analysts, including EY chief economist Gregory Daco, suggest that Powell has not yet committed to a December rate cut, though two quarter-point reductions this year are widely expected. Amid these developments, Trump’s efforts to exert greater control over the Federal Reserve and plans to replace Powell add further complexity to the economic landscape.

A recent report by Deloitte highlights that sweeping tariffs imposed by the US government under President Donald Trump are poised to significantly impact the oil and gas industry by 2026. The energy sector, which depends extensively on global supply chains for essential materials like drilling rigs, valves, compressors, and specialized steel, faces rising operational costs and disrupted supply chains due to these tariffs. The report estimates that material and service costs across the value chain could surge by 4% to 40%, potentially squeezing industry margins. The US has levied tariffs ranging from 10% to 50% on key imports such as steel, aluminum, and copper, as well as crude feedstocks not covered by the United States-Mexico-Canada Agreement. These measures are expected to reshape the industry’s cost structure and introduce uncertainty in feedstock sourcing. Additionally, inflation and financial instability triggered by the tariffs may delay final investment decisions (FIDs) and offshore greenfield projects worth over $50 billion until 2026 or later. Operators may find it challenging to offset higher costs, which could dampen investment activity in the sector. To mitigate risks, oil and gas companies are likely to renegotiate contracts with escalation and force majeure clauses. Moving forward, companies may prioritize supply chain resilience over cost efficiency, shifting to domestic or non-tariffed suppliers and leveraging foreign trade zones or tariff reclassification to manage duties. This shift is particularly significant given the US’s reliance on imports, with nearly 40% of oil country tubular goods demand in 2024 met through foreign sources.

U.S. President Donald Trump concluded his five-day Asia trip with a significant trade breakthrough during a summit with South Korean President Lee Jae Myung in Gyeongju. The two leaders finalized details of a previously contentious trade agreement, which had been in limbo since July. Under the deal, South Korea will invest $350 billion in the U.S., split into $200 billion in cash payments and $150 billion in shipbuilding investments. The agreement also includes a 50/50 profit-sharing arrangement until initial investments are recouped, with U.S. Commerce Secretary Howard Lutnick overseeing project assessments. The deal awaits ratification by South Korea’s parliament. Trump expressed optimism about his upcoming meeting with Chinese President Xi Jinping, hinting at potential tariff reductions on Chinese goods in exchange for Beijing’s commitment to curb fentanyl precursor exports. The U.S. could halve its current 20% tariffs on Chinese goods, according to reports. Meanwhile, South Korea rolled out an extravagant welcome for Trump, presenting him with a gold crown and the nation’s highest honor, the ‘Grand Order of Mugunghwa.’ Despite the diplomatic fanfare, protests erupted near the summit venue, with critics decrying the focus on tariff negotiations. Trump also addressed North Korea’s recent missile test, reiterating his commitment to resolving tensions on the Korean Peninsula.

Dubai Aerospace Enterprise (DAE) has announced a remarkable financial performance for the first nine months of 2025, with profits doubling as the global aviation sector rebounds. The company reported a pre-tax profit of $653 million, a 100% increase compared to $326.6 million in the same period last year. Total revenue also surged by 26%, reaching $1.28 billion, up from $1.02 billion, driven by robust fleet utilization and the integration of Nordic Aviation Capital (NAC), acquired earlier this year. Operating cash flow rose to $1.13 billion, while adjusted pre-tax profit margins improved to 26.7%. DAE’s total assets expanded to $16.36 billion, reflecting the successful incorporation of NAC’s portfolio. CEO Firoz Tarapore highlighted the company’s strengthened position in the global leasing market, emphasizing the full integration of NAC and sustained financial health. DAE’s fleet grew significantly, with 263 aircraft acquired, including 249 for its owned portfolio. The company also signed 162 new lease agreements and expanded its engineering services arm, Joramco, which saw a 56.3% increase in profitability. With $3.44 billion in available liquidity and $2.75 billion raised from regional and Asian banks, DAE is well-positioned to capitalize on the ongoing recovery in commercial aviation and the global push for fleet modernization.